Template:Nutshell AIFMD 21(11)(d)

21(d) the depositary ensures that the third party complies with the following when performing its delegated tasks:

(i) it has adequate structures and expertise proportionate to the nature and complexity of the assets of the AIF entrusted to it;

(ii) for custody tasks set out in paragraph 21(8)(a), it is subject to

effective prudential regulation, including minimum capital requirements, and supervision in its jurisdiction and

an external periodic audit to ensure that the financial instruments are in its possession;

(iii) it segregates the depositary’s clients’ assets from its own and the depositary’s own assets so that they can be clearly identified as belonging to clients of a particular depositary;

(iv) it does not use the AIF’s assets without first getting the AIF’s consent and telling the depositary; and

(v) it generally complies with paragraphs 21(8) and 21(10) when carrying out its obligations.